Highlights of 2015 Budget Summer Update
Sunday, July 19, 2015 The most significant changes announced in the summer update to the 2015 Budget are as follows:
-The income tax personal allowance will increase from £10,600 to £11,000 in 2016/17, and further increase to £12,500 by 2020.
-The main rate of corporation tax will be reduced from 20 per cent to 19 per cent in 2017 and will reduce to 18 per cent by 2020.
-The taxation of dividends will be reformed with the dividend tax credit being abolished from April 2016 and replaced by a £5,000 tax free allowance for dividends. The Individuals who receive significant dividend income will pay more under the new rules. Most Limited Company Contractors are likely to be affected.
-Mortgage interest relief will be restricted for buy to let landlords who will only be able to claim tax relief at the basic rate on their mortgage payments.
A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.
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